The resurgence of business and logistics parks in the UK can be attributed, in large part, to demand for targeted warehousing and logistics, the rapid growth of online shopping, particularly post pandemic and the desire for re-location from existing outdated buildings.

A global increase in e-commerce, which gained unprecedented growth during lockdown cycles and an increasing consumer demand for shorter delivery cycles has increased the need for greater operational productivity. The emphasis is very much on utilising smart technology, automation and compressed transportation timing – every minute matters.

Tenants are now ever more conscious of the bottom line regarding operational costs and seek to relocate to purpose-designed warehouses in key locations that offer faster connectivity. Access to major national and international transport routes, including ports that are less than an hour away and easy connectivity to the M25 (and other key motorways) are now essential on an operational wish list. For most tenants, the lead time is critical and the pressure on logistics has never been greater.

Older logistic units will require significant annual capital expenditure to keep them operational. An expanding contingency will need to be incorporated, which ultimately impacts the bottom line, particularly if repairs effect trading activity. The tightening regulations on Energy Performance Certificates will also drive the need for upgrades on certain buildings over the next few years, which adds to the acute need for new purpose designed logistics units.